The company said on Wednesday that revenue in the most recent quarter was $81.3 billion, but its share price dropped more than 5 percent in after-hours trading. ...

Microsoft's big financial bet on artificial intelligence got even bigger in the December quarter, but it also showed continued signs ...

Core Insights - Microsoft reported second-quarter revenue of $81.3 billion, exceeding Wall Street expectations [1] - Azure cloud services experienced a significant growth of 39% [1] - Microsoft Cloud revenue surpassed $50 billion for the quarter [1]

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

The company reported strong growth in Azure cloud-computing segment and an earnings-per-share boost from OpenAI deal ...

Revenue Growth - Microsoft Cloud revenue increased 26% to $51.5 billion[141] - Microsoft 365 Commercial cloud revenue increased 17%[141] - Azure and other cloud services revenue increased 39%[141] - LinkedIn revenue increased 11%[141] - Productivity and Business Processes revenue increased by $4.7 billion or 16%, with Microsoft 365 Commercial products and cloud services revenue growing by $3.4 billion or 16%[178] - Intelligent Cloud revenue increased by $7.4 billion or 29%, with operating income rising by $3.0 billion or 28%[182][183] - Revenue for the three months ended December 31, 2025, was $81,273 million, an increase of 17% compared to $69,632 million for the same period in 2024[161] - Total revenue for the six months ended December 31, 2025, increased by $23.7 billion or 18% compared to the prior year[177] Net Income and Earnings - Net income for the three months ended December 31, 2025, was $38.5 billion, a 60% increase compared to the prior year[161] - Current year net income increased by $4.5 billion or $0.60 in diluted EPS, positively impacted by net gains from investments in OpenAI[175] - Adjusted net income (non-GAAP) for the three months ended December 31, 2025, was $30.875 billion, reflecting a 23% increase from $25.047 billion in 2024[224] - Adjusted net income for the six months ended December 31, 2025, was $61.7 billion, a 23% increase from $50.2 billion in 2024[224] Operating Income and Expenses - Operating income for the three months ended December 31, 2025, increased 21% to $38.3 billion[161] - Operating expenses increased by $1.6 billion or 5% driven by R&D investments in AI talent[171] - Operating expenses increased by $809 million or 6%, reflecting higher research and development investments and advertising expenses[202] - General and administrative expenses increased by $109 million or 6% for the three months ended December 31, 2025, driven by higher legal expenses[208] - For the six months ended December 31, 2025, general and administrative expenses rose by $242 million or 7%, also due to higher legal expenses[209] Cash Flow and Investments - Cash from operations increased by $24.3 billion to $80.8 billion for the six months ended December 31, 2025, primarily due to increased cash received from customers[230] - Cash used in investing activities rose by $28.0 billion to $57.3 billion for the six months ended December 31, 2025, driven by significant increases in property and equipment additions[230] - Cash used in financing increased by $1.6 billion to $29.4 billion for the six months ended December 31, 2025, primarily due to a $4.0 billion increase in common stock repurchases[230] Tax and Other Income - The effective tax rate increased to 20% for both the three and six months ended December 31, 2025, compared to 18% in the same periods of 2024, primarily due to deferred tax expenses[218] - Other income (expense), net totaled $9.971 billion for the three months ended December 31, 2025, compared to a loss of $2.288 billion in the same period of 2024, marking a 536% increase[224] - Interest and dividends income increased to $840 million for the three months ended December 31, 2025, up from $600 million in 2024, primarily due to higher portfolio balances and yields[215] Cloud and AI Investments - Microsoft Cloud gross margin percentage decreased to 67% due to investments in AI infrastructure[172] - Investments in cloud offerings and AI infrastructure will continue to increase operating costs[146] - A long-term strategic partnership with OpenAI was extended to advance artificial intelligence[144] Future Projections - Total unearned revenue expected to be recognized by December 31, 2026, is $54.044 billion[234] - The expected future recognition of unearned revenue totals $54.0 billion as of December 31, 2025, with $26.3 billion expected in the three months ending March 31, 2026[234] - The company expects existing cash and cash flows to be sufficient to fund operating activities and cash commitments for at least the next 12 months[226]

Financial Performance - Net income on a GAAP basis was $38.5 billion, reflecting a 60% increase year-over-year, while non-GAAP net income was $30.9 billion, up 23% [3] - Diluted earnings per share on a GAAP basis was $5.16, a 60% increase, and $4.14 on a non-GAAP basis, up 24% [3] - Total revenue for Q2 2025 reached $81.273 billion, a 16.8% increase from $69.632 billion in Q2 2024 [25] - Net income for Q2 2025 was $38.458 billion, up 59.7% from $24.108 billion in Q2 2024 [27] - Earnings per share (EPS) for Q2 2025 increased to $5.18, compared to $3.24 in Q2 2024, representing a 60.2% growth [25] - Operating income for the first half of 2025 was $76.236 billion, a 22.6% increase from $62.205 billion in the same period of 2024 [25] Revenue Growth - Microsoft Cloud revenue reached $51.5 billion, a 26% increase year-over-year (24% in constant currency) [3] - Revenue in the Intelligent Cloud segment was $32.9 billion, a 29% increase (28% in constant currency) [5] - Azure and other cloud services revenue increased by 39% (38% in constant currency) [5] - Microsoft 365 Commercial cloud revenue grew by 17% (14% in constant currency) and Consumer cloud revenue increased by 29% (27% in constant currency) [4] - The Productivity and Business Processes segment generated $34.116 billion in revenue for Q2 2025, a 15.7% increase from $29.437 billion in Q2 2024 [33] - The Intelligent Cloud segment reported revenue of $32.907 billion for Q2 2025, up 28.9% from $25.544 billion in Q2 2024 [33] - The More Personal Computing segment's revenue for Q2 2025 was $14.250 billion, a slight decrease from $14.651 billion in Q2 2024 [33] Shareholder Returns - Microsoft returned $12.7 billion to shareholders through dividends and share repurchases, a 32% increase compared to the previous year [5] Investments and Future Outlook - Investments in OpenAI impacted net income by $7.6 billion and diluted earnings per share by $1.02 in the second quarter of fiscal year 2026 [10] - The company anticipates continued growth driven by cloud and AI services, with a focus on innovation and product enhancements [6] Assets and Cash Position - Cash and cash equivalents at the end of Q2 2025 were $24.296 billion, down from $30.242 billion at the end of Q1 2025 [31] - Total assets increased to $665.302 billion as of December 31, 2025, compared to $619.003 billion as of June 30, 2025 [29] Performance Obligations - Commercial remaining performance obligation surged 110% to $625 billion [3] Research and Development - Research and development expenses for Q2 2025 were $8.504 billion, up from $7.917 billion in Q2 2024, indicating a 7.4% increase [25]

Microsoft topped quarterly revenue expectations for its crucial cloud-computing business on Wednesday, signaling that its hefty spending on artificial intelligence was paying off, easing worries about... ...

Company Overview - ZOOZ Strategy, formerly ZOOZ Power, transitioned from kinetic energy to Bitcoin investment, resulting in an 84% stock decline since last summer, with a current market cap of $87 million, lower than its Bitcoin holdings [1][2] - The company held its IPO on the Tel Aviv Stock Exchange in 2021 and later merged with a SPAC but faced challenges on Wall Street [2] Leadership and Strategy - CEO Jordan Fried, appointed after a background in blockchain ventures and cybersecurity, emphasizes a long-term vision for ZOOZ, including an annual salary of $1 and performance-based shares [3][4] - ZOOZ's strategy includes optimizing operations, improving transparency, and exploring asset management beyond merely holding Bitcoin [6] Market Position and Valuation - ZOOZ is perceived as undervalued in the market, trading below $1 and receiving a warning from Nasdaq for non-compliance, with plans for a potential reverse stock split and a $50 million share buyback [7] - The company aims to provide exposure to Bitcoin for Israeli investors facing regulatory challenges in purchasing Bitcoin directly [6] Industry Perspective - Fried views Bitcoin as a significant innovation, likening its adoption to historical financial shifts, and believes it plays a role in national security [2][8] - The company is exploring the potential for its original energy activities to pivot towards serving large cloud providers, reflecting a shift in market dynamics [6] Geopolitical Considerations - Fried highlights the importance of energy production in relation to Bitcoin mining and national competitiveness, noting Israel's current energy challenges compared to other nations [9]

NVIDIA Corporation (NASDAQ:NVDA) is one of the stocks Jim Cramer put under the microscope. Cramer showed bullish sentiment toward the stock during the episode, as he said: You know what didn’t matter at all to these bears, though? I got tremendous assurance that there could be some very big Chinese sales on the horizon. Jensen’s in China. That matters. To me, he sounded sanguine. He urged that no one take the sales for granted. I think that’s terrific. I also think that the companies that keep on announci ...